A Price Ceiling Set Below an Equilibrium Price Tends to Cause

question 109

Multiple Choice

A price ceiling set below an equilibrium price tends to cause persistent imbalances in the market because

• A) Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
• B) Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
• C) Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
• D) Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.

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Definitions:

Upper Respiratory Infection

A medical condition characterized by the infection of the upper respiratory tract, often involving the nose, throat, and sinuses.

Antitussive

A type of medication designed to suppress coughing, often used in the treatment of chronic coughing symptoms.

Antihistamine

A type of medication used to relieve allergic reactions by blocking the action of histamine.

Schedule III

A classification for drugs that have a moderate to low potential for physical and psychological dependence, as defined by regulatory authorities.